Offshore heavyweight Walkers taps PE for corporate services arm

Walkers, one of the most recognisable names in the offshore legal market, has taken investment from London-based private equity firm Vitruvian Partners to scale its fund and corporate services arm, Walkers Professional Services (WPS).

Freshfields acted for Vitruvian and Skadden advised Walkers. The investment taps into a trend of private equity interest in legal-adjacent businesses that have become a magnet for capital as competition for market share heats up.

The deal

Walkers and Vitruvian will share ownership of WPS and aim to "capitalise on emerging opportunities and navigate evolving market dynamics". Walkers specialises in Bermuda, BVI, Cayman Islands, Guernsey, Ireland and Jersey law.

The firm cited increased client demand for a comprehensive suite of integrated services across key investment hubs and says Vitruvian brings capital and sector expertise.

PE loves this sector

Private equity’s interest in professional services has accelerated in recent years, with investors drawn to the sticky client relationships and predictable revenue found in areas like accounting, fund administration and corporate services.

Fund administration, trust and corporate services have become major investment targets, bringing strong recurring-revenues and growing demand driven by expanding global capital flows. Clients including private equity, hedge funds, trusts and financial institutions have been outsourcing more of these functions in an increasingly complex regulatory environment.

The most high-profile recent deal is Permira's £2.3 billion move to acquire FTSE 250-listed JTC. Clifford Chance, Sidley, Linklaters and White & Case are all involved on a deal that will see Jersey-based fund administration company taken private.

Investor Warburg Pincus also took a minority stake this year in Jersey-based Aztec group, an international fund and corporate services provider, in a deal steered by Latham & Watkins and Kirkland & Ellis.

Advising

Freshfields advised Vitruvian Partners led by London private equity partners Alastair Brown and Tim Wilmot.

Skadden acted for Walkers led by London private equity partners Richard Youle and Katja Butler, alongside IP partner Deborah Kirk. PE heavyweight Youle is head of Skadden's London office and co-head of private equity, while Butler is co-head of UK corporate.